Retirement (TMRS)
The City of Watauga is a member of the Texas Municipal Retirement System (TMRS). The purpose of the retirement system is to provide adequate and dependable retirement benefits for employees retiring from Texas cities. Participation is mandatory for all eligible employees. There is no maximum age for participation in the TMRS. As a TMRS participant, you receive an additional life insurance benefit of 1x your annual salary.
Vesting
Employees are vested after 5 years of service. Vesting means you have worked enough years and established enough service credit to meet the minimum length of service requirement for retirement. Once vested, and you leave the City of Watauga, you may leave your member deposits with TMRS until you reach retirement eligibility. Please remember to update your beneficiaries once you have become vested.
Retirement Eligibility
You can retire under the TMRS when you have at least 5 years of service and are at least age 60. You may also retire at any age if you have at least 20 years of service. Upon retirement, you will choose a monthly payment option to receive your benefit.
Plan Contributions
Employees contribute 7% of gross income, on a pre-tax basis, each pay period and the City matches the employee contribution according to a 2 to 1 ratio. Contributions in the system are not taxable until withdrawn.
Deferred Compensation
The City of Watauga’s deferred compensation 457(b) option is an investment for your future, designed to provide an additional source of income to help you financially in your retirement years. Participation in a deferred compensation plan is voluntary and employees are eligible to join and make changes at any time. The City does not contribute to 457(b) plans. You have a variety of investment options to achieve a maximum return on your savings by working with the following providers:
- NPPFA and Nationwide
PARS: Part time / seasonal employees, who work less than 1000 hours per year, are eligible for Public Agency Retirement Services
Texas Municipal Retirement System (TMRS)
Full-time Employee Retirement Plans
TMRS (800) 924-8677 www.tmrs.org
Part-time Employee Retirement Plans
PARS (800) 540 –6369 www.pars.org